Hillenbrand to be acquired by Lone Star Funds for $32 per share

BATESVILLE, Ind. - Industrial equipment maker Hillenbrand, Inc. (NYSE:HI) announced Wednesday it has entered into a definitive agreement to be acquired by an affiliate of Lone Star Funds in an all-cash transaction valued at $32.00 per share, representing an enterprise value of approximately $3.8 billion. The deal comes as Hillenbrand generates annual revenues of $2.86 billion and EBITDA of $417.6 million, according to InvestingPro data.

The purchase price offers a 37% premium over Hillenbrand’s closing share price on August 12, 2025, and a 53% premium over its 90-day volume weighted average price ending on that date. The offer price exceeds Hillenbrand’s current Fair Value, as calculated by InvestingPro’s proprietary models, suggesting Lone Star is paying a strategic premium for the acquisition.

The transaction, unanimously approved by Hillenbrand’s Board of Directors, is expected to close by the end of the first quarter of 2026, subject to shareholder approval and regulatory clearances. Upon completion, Hillenbrand will become a privately held company and its shares will no longer trade on the New York Stock Exchange.

"We are pleased to reach this agreement with Lone Star, which delivers immediate and certain cash value to our shareholders at a substantial premium to recent trading," said Helen Cornell, Chairperson of the Board of Directors, in a statement based on the company’s press release.

Hillenbrand provides engineered processing equipment through its Advanced Process Solutions and Molding Technology Solutions segments. The company has repositioned itself over the past three years through strategic acquisitions and divestitures, including building out its industrial food equipment portfolio. InvestingPro data shows the company has maintained a strong dividend track record, raising payments for 17 consecutive years, while achieving a 29.23% price return over the past six months.

Donald Quintin, Chief Executive Officer of Lone Star, stated that the private equity firm plans to "invest in the business and help foster continued growth and innovation at the company."

As a result of the announcement, Hillenbrand will not hold its previously scheduled earnings conference call in November, nor will it issue financial guidance for fiscal year 2026. The company currently maintains a FAIR financial health score of 2.27 out of 5, based on InvestingPro’s comprehensive analysis, which evaluates over 100 financial metrics available in Pro Research Reports covering 1,400+ top stocks.

Evercore is serving as financial advisor to Hillenbrand, while Jefferies LLC and UBS Investment Bank are advising Lone Star.

In other recent news, Hillenbrand Inc. reported its third-quarter 2025 earnings, surpassing Wall Street’s expectations with an earnings per share of $0.51, slightly above the forecasted $0.50. The company’s revenue for the quarter was $599 million, exceeding the anticipated $572.48 million, although it marked a 24% decrease compared to the previous year. Additionally, Hillenbrand is exploring strategic options, including a potential sale, as reported by Bloomberg, citing anonymous sources familiar with the matter.

In terms of analyst activity, S&P Global Ratings downgraded Hillenbrand to ’BB’ from ’BB+’ due to continued elevated leverage, assigning a negative outlook to the company. The rating agency noted that the company’s adjusted leverage has remained above 4x since fiscal 2023, partly due to increased debt from acquisitions amid economic uncertainty and higher interest rates. Meanwhile, DA Davidson reiterated its Neutral rating on Hillenbrand stock, maintaining a $24.00 price target. The research firm slightly raised its fiscal year 2025 estimates while keeping fiscal year 2026 projections unchanged, citing a mixed demand environment across the Advanced Process Solutions and Molding Technology Solutions segments.

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